JPMorgan said in its latest report on Wednesday that retail investors sold most of the stocks in the "tech seven" last week, with the focus shifting to pharmaceutical companies such as Eli Lilly.
According to analysts from Xiaomo, in the past week, retail traders have sold $1.4 billion worth of stocks, selling off giants such as Tesla, Apple, Alphabet, and Microsoft.
The report states that although Nvidia has told the "little ones" that it is still a magnet, their attention has actually shifted to large pharmaceutical companies such as Eli Lilly, Pfizer, and Novo Nordisk since last week.
With the continued popularity of weight loss pills, pharmaceutical companies including Eli Lilly and Novo Nordisk have seen their stock prices soar recently, and it's no wonder retail investors are interested in these companies. So far this year, the stock prices of Lilly and Novo Nordisk have risen by about 32% and 33% respectively.
In fact, not only retail investors, but also Wall Street institutions are optimistic about these companies.
For example, Bank of America set a maximum target price of $1000 per share for Eli Lilly this month, which means the company's stock price may rise by another 30%. The bank stated that the manufacturer's GLP-1 weight loss drug is expected to succeed, with sales expected to exceed $60 billion by 2030.
The Centers for Disease Control and Prevention predicts that the obesity rate in the United States is about 40%, and sales of Eli Lilly, Novo Nordisk, and Pfizer drugs are expected to continue to soar in the coming years. Analysts predict that by 2035, the proportion of Americans taking these drugs will jump from 1% to 15%.
Meanwhile, the frenzy driven by artificial intelligence (AI) has recently shown some signs of cooling down. Goldman Sachs stated at the end of February that hedge funds were selling technology stocks at the fastest pace in seven months, after buying technology stocks for six consecutive weeks before Nvidia released quarterly results.
Even recently, some people have suggested that it may be time to retire the nickname "Technology Seven". Analyst Mike O'Rourke, who coined the term, pointed out that in recent months, their fate has sharply diverged and they can no longer be seen as a group.